Rosneft's 12-month IFRS net profit down 79.1% in 2020

AK&M 16 February 2021 08:45

IFRS net profit of Rosneft for 2020 decreased by 79.1% to RUB 147 billion, as follows from the company's financial statements.

Revenue decreased by 33.6% to RUB 5.757 trillion as a result of last year's global oil price slump and shrinking oil production and sales due to restrictions under the OPEC+ agreement, as well as lower demand in the global market amid the COVID-19 pandemic.

Capital expenditures amounted to RUB 785 billion ($10.8 billion) decreasing by 8.1% year-on-year.

Rosneft is the leader of Russia's petroleum industry and the world's largest publicly traded petroleum company. The Company's main activities include prospecting and exploration of hydrocarbon deposits, oil, gas and gas condensate production, upstream offshore projects, crude processing, as well as marketing of oil, gas, and refinement products in Russia and abroad.

The company is on the list of strategic enterprises in Russia. Its principal main shareholder (40.4% of shares) is Rosneftegaz wholly owned by the Government of Russia, while BP owns 19.75% of shares, QH Oil Investments LLC holds 18.93% of shares, one share belongs to the Government represented by Russia's Federal Agency for State Property Management (Rosimushchestvo).

IFRS net profit attributable to Rosneft shareholders for 2019 increased by 29% to RUB 708 billion from RUB 549 billion a year earlier. Sales revenue and equity share in profits of associates and joint ventures went up 5.3% to RUB 8.676 trillion from RUB 8.238 trillion, EBITDA increased by 1.2% to RUB 2.105 trillion from RUB 2.081 trillion.